Australian jobs well above forecasts in December, unemployment rises Investing.com
Investing.com– Australia’s labor market expanded much more than expected in December, demonstrating the resilience of the labor market despite the challenges of high interest rates and inflation.
It rose by 56,300 in December, Australian Bureau of Statistics data showed on Thursday. The reading was well above expectations of 14,500 people, and up from the 36,500 seen in the previous month.
That in Australia – which measures the percentage of the population in employment – rose slightly to 67.1% in December, compared with expectations that it would hold steady at 67%.
It rose to 4% in December, in line with forecasts, and compared with growth of 3.9% in the previous month.
Australia has seen its labor market grow against expectations in eight of the past nine months, with a decline recorded in October.
In November, a larger number of people who were unemployed and waiting to start working in October got a job than usual. This trend continued in December with a sharp increase in employment, which also contributed to the increase in unemployment.
The tight labor market is one of the key issues for the Reserve Bank of Australia in keeping interest rates stable. The RBA held rates steady at near-decade highs, citing a strong labor market and sticky core inflation.
Strength in the labor market has also kept inflation at bay amid strong consumer demand.
The RBA is due to announce its next one on 18 February 2025.
Market analysts are widely predicting that the RBA will begin its rate-cutting cycle in 2025, with the first cut expected in May.